Logistics Mgt Webcast

Copyright © 2009 Infor. All rights reserved. www.infor.com.

Looking To Transform Your Supply Chain And Save

Money?

Joel Stachowski, InforBrian Randleman, Generac

2 Copyright © 2009 Infor. All rights reserved. www.infor.com.

Agenda

Welcome and Introductions Who is Generac

History, Product Line, Manufacturing, Customers

Supply chain processes – A history at Generac Implementation process Metrics for success Key Lessons Learned Summary Next Steps Q & A

Program Support Sales


Who Is Generac?

Design and manufacture power generation systems Portable Home Standby Commercial/Industrial Telecom, Private Label and R/V also

Based in Waukesha, WI Founded in 1959 by Dr. Robert Kern Sold to CCMP Capital in 2006, public in 2010


Broadest Industry Product Line

Residential Standby Generators

Output: 7kW – 45kW

Light-CommercialStandby Generators

Output: 20 kW – 150kW

Industrial Standby Generators

Output: 20kW – 6MW

Portable Generators

Output: 2 kW – 17.5kW

Recreational Vehicle Generators

Output: 3.5kW – 7.5kW

Telecommunications

Output: 20kW – 3MW


Manufacturing Capability

1,000,000 sq. ft. manufacturing space

Eagle, WIWaukesha, WI

Maquoketa, IA Whitewater, WI


Customers


Supply Chain Processes History

Warehouse challenges Ineffective warehousing practices

Annual cycle count expensive and time consuming Lack of best practices in storage, picking or shipment prep

High cost of warehouse operations

Transportation challenges Unsatisfactory transportation planning High cost of freight due to order splitting

No staff to support more developed logistics practices

Sales


Objectives For Change

Finished Goods Distribution Center Investing in a valuable asset Improve layout to remove operational constraints Use wise technology choices to incorporate best practices into

Logistics processes Invest in WMS for ability to manage FGDC using best practices, efficiency, manpower control and task verification

Invest in TMS for transportations savings from mode selection and freight damage reduction

Transportation mode change Increase use of Full Trailer and Pool Distribution for freight savings

and reduced damage Optimize location for lowest inbound & outbound cost

Sales


Generac Operational Concept

Receiving Factories send ASN with unit level detail Scan serial number as license plate; master tag for ATS pallets Receive and immediate putaway or to surge Item based rules for putaway (consumption, weight, dims)

Picking Loads passed to WMS for execution via wave planning Picking waves staged at dock or trailer loaded in reverse stop order Paperwork prints at operator or dock printer Kitting area near dock for ATS insertions


Generac Operational Concept, Cont.

Inventory Control Daily Cycle Counts based on ABC method Can maintain ownership level for consigned inventory

Transportation Planning Main focus of DC operations is to save freight Use TMS to create consolidated loads of single, multi-stop, or pool

truckloads Account for customer requirements in planning Ship by date based on Customer Service Policy


Generac Distribution Network

Factory

EW Channel

Retail Stores

FactoryFactory

Fin Goods Dist Ctr

Private LabelDealer Network


WMS Solution Requirements

Cycle Counting Location Inventory Control License Plate Control Labeling Compliancy Distribution Item Attributes Wave and Zone Picking Multiple Receiving, Putaway, and Picking Strategies Task Tracking and Reporting Link to Traffic Management Software

Sales


FGDC Project Plan


WMS Selection And ImplementationSales

SystemsRequirement

Document

Master Schedule

Site Preparedness

Audit

Phase 3 - Software Development

SoftwareDevelopment

Support

SystemsRequirement

Document

Master Schedule

Site Preparedness

Audit

Phase 3 - Software Development

SoftwareDevelopment

Support

Vendor Pre-Qualification

Functional Specification

Document

Phase 2 - Vendor Selection

Bid ProcessManagement

ContractAwarded

Evaluation Matrix

Vendor Pre-Qualification

Functional Specification

Document

Phase 2 – Vendor Selection

Bid ProcessManagement

ContractAwarded

Evaluation Matrix

Site Coordination,Installation And

Project Management

SystemAcceptance

Testing

ApplicationTraining

On-Going System

Evaluation

Site Coordination,Installation And

Project Management

SystemAcceptance

Testing

ApplicationTraining

On-Going System

Evaluation

Phase 4 - Implementation

IT GapAnalysis

Activity Profiling

ProcessMaps

Phase 1 - LIS Assessment

New SystemJustification

Future BusinessRequirement

IT GapAnalysis

Activity Profiling

ProcessMaps

Phase 1 - Logistics Information Systems Assessment

New SystemJustification

Future BusinessRequirement


WMS Vendor Selection

Competitor A Competitor B Competitor C

Background Average Score 3.29 3.43 3.71

Score in % 65.80% 68.60% 74.20%

Potential Score 5.00 5.00 5.00

Service & Support Average Score 3.00 3.00 3.67

Score in % 60.00% 60.00% 73.40%


General Technical Average Score 3.19 3.06 3.25

Score in % 63.80% 61.20% 65.00%


Reference Score Average Score N/A N/A N/A

Score in %

Potential Percentage 100.00% 100.00% 100.00%

Requirement Score Average Score 7.78 7.91 8.04

Score in % 92.18% 93.72% 95.26%

Potential Score (Including Weights) 8.44 8.44 8.44

Cost Average Score 5.00 3.12 2.60

Score in % 100.00% 62.50% 52.04%


Final Score Average Score in % 76.36% 69.20% 71.98%


WMS TMSPre-Receiving

Receiving

Quality

Putaway

Inventory Control

Picktickets

Wave Management

Picking

Loading

Orders

Carrier

Acceptance

Selection

Appointment

Updates

Invoice

Tender

Settlement

Shipments

Ship ViaAppointment

Loads

Track &

Trace

Inbound Processing

Not in scope of current Generac

Project

VendorsVendorsVendorsVendors

Carrier


Expectations

Warehouse Receiving – Streamline paperless receipt of goods via RF terminal Putaway – Rules based, system directed selection and RF

assignment Picking – RF Dispatch to interleaving operators with pick confirmation Cycle Count – Directed, interleaved and verified periodic cycle

counts based on product activity, sales or event Storage Density – Store more product in less space, more efficient

layout and reduced travel times Orders, Value, Weight – Ship more product with less people, more

control, more verification and accuracy Transportation

Shipment Planning – Systematic and repeatable creation of optimized loads

Transportation – Ship product using optimized methods (Pool, FTL) for greater savings

Sales


Accomplishments

Warehouse Receiving 84% more receipts per clerk Putaway 35% more putaway per driver Picking 9% more picks per driver, ∞ verifiable accuracy Cycle Count 128% more counts per driver Storage Density 60% less total square footage used Orders, Value, Weight

Orders 39% more orders per driver Value 22% more $$ per employee Weight 17% more weight per employee

Transportation Shipment Planning 525% more loads planned Freight as a percent of sales (FPS) decreased by 18% Saved $2.6 million in 2009 - expect more than $1 million ongoing On-time ship rates are now over 90%—up from 35% to 40%


Delivery

On Time Delivery Customer Score Cards

20%

40%

60%

80%

100%

Total DC 40.8% 85.7% 89.7% 88.8% 91.9% 88.3% 90.1% 93.3% 96.4% 95.9% 96.9% 97.2% 97.7% 97.7%

Feb '09

Mar '09

Apr '09

May '09

Jun '09

Jul '09

Aug '09

Sep '09

Oct '09

Nov '09

Dec '09

Jan '10

Feb '10

Mar '10


Key Factors For Success

Have or create a Customer Service Policy CSP defines service targets and objectives for Logistics (in-stock, on-

time, fill rate all for different customer segments) Project goals are to reduce Logistics Costs subject to the Customer

Service Policy

Design details to show preparation and depth of analysis Identify the stakeholders with real approval power

Stay on time with regular stakeholder meetings Generac met bi-weekly with stakeholder to remove barriers

Develop functional requirements Identify solutions that meet functional requirements to avoid

customization Implement solution with best practices to improve your processes

Sales


FGDC Construction


FGDC – Angled Aisle Layout


Next Steps

For additional information on Supply Chain Management solutions visit:

http://www.infor.com/solutions/scm/

If you have any questions, please contact:

Christine Brown | Marketing Program Manager | Infor | office: 734.623.4030 | [email protected]

Program Support Sales


Thank You For Attending Today.

QuestionsSales

Logistics Mgt Webcast

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